Risk Disclosure
Risk warning. Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This disclosure is a summary only and does not replace your client agreement or key information documents where required.
1. Purpose of this disclosure
This Risk Disclosure Statement describes principal risks of trading CFDs with Xntara brand entities via the trading platform connected to xntara.com. It is not exhaustive. Additional product-specific risks may apply to individual instruments. You must read your client agreement, cost disclosures, and any key information document (KID/KIID) applicable in your region before trading.
2. What CFDs are
A CFD is a leveraged derivative contract between you and your contracting entity. You do not acquire ownership of the underlying cryptoasset, share, currency pair, index, or commodity. Your profit or loss depends on the difference between the price at which the CFD is opened and closed, adjusted for applicable charges and financing.
You can typically take long or short positions. Short positions can incur unlimited theoretical loss in rising markets (subject to account protections that may apply in your jurisdiction).
3. Leverage and margin
CFDs are commonly traded on margin: you post a fraction of the full notional exposure as margin. Leverage magnifies both gains and losses. A small adverse price move can result in losses that are large relative to your margin and can lead to automatic liquidation of positions.
Margin requirements can change, especially in volatile markets. If margin is insufficient, we may close positions without prior notice in accordance with your agreement. It is your responsibility to monitor margin and fund the account adequately.
4. Risk of loss — including loss beyond deposit
You can lose all capital dedicated to CFD trading. In some jurisdictions and product configurations, losses can exceed deposits if negative balance protection does not apply or applies only partially. Do not assume you cannot lose more than you deposit. Check the protections stated for your entity and account type.
5. Market volatility and gapping
Financial markets can move rapidly and discontinuously. Prices may “gap” over weekends, during news events, at market open, or in illiquid sessions. Orders, including stop-loss orders, may execute at prices significantly worse than requested (slippage) or may not be filled as expected.
6. Crypto-specific risks
Cryptocurrency markets may trade continuously, exhibit extreme volatility, sharp liquidity drops, fork/airdrop events affecting reference prices, exchange or custody incidents in the underlying ecosystem, and sudden regulatory change. Pricing references for crypto CFDs may differ from any single exchange. Weekend and off-peak liquidity can be thinner, increasing spreads and slippage.
7. Liquidity risk
Not all instruments have deep liquidity at all times. Wide spreads, rejected orders, or inability to close at a desired price can occur — particularly in exotic pairs, small-cap stock CFDs, or during stress events.
8. Execution, pricing, and model risk
Orders on the Platform are executed under the execution policy of your entity. You may receive partial fills. During fast markets, quoted prices can change between submission and acceptance. Public Site tickers are indicative only and are not the prices against which Platform orders execute.
System latency, quote aggregation, and risk filters may affect whether an order is accepted. We do not guarantee execution at any displayed price from a marketing page or third-party chart.
9. Costs, spreads, and overnight financing
Trading costs reduce returns and can turn profitable price moves into net losses. Costs may include spreads, commissions, currency conversion, overnight financing (swap/rollover), and other fees disclosed in your cost schedule. Holding positions multi-day can incur significant financing charges, especially on leveraged crypto and FX positions.
10. Risk-management tools are not guarantees
Stop-loss, take-profit, guaranteed stop (if offered), and margin alerts are tools — not guarantees of a maximum loss in all market conditions. Guaranteed stops, where available, may carry a premium and apply only under stated conditions.
11. Platform, technology, and operational risk
Access to the Platform depends on internet connectivity, device performance, power, and our systems plus third-party infrastructure. Outages, bugs, cyber incidents, or maintenance can prevent you from opening, modifying, or closing positions. You should have contingency plans (for example alternative devices or contacting support) and avoid leaving unmanaged risk if you cannot monitor markets.
12. Counterparty, credit, and entity risk
When you trade CFDs with Xntara, your counterparty is the contracting entity named in your agreement — not “the market” as an exchange. You are exposed to that entity’s credit and operational risk. Client-money protections (if any) depend on jurisdiction and entity rules and are not equivalent to bank deposit insurance in all cases. Review Entities and your terms.
13. Currency risk
If your account base currency differs from the currency of an instrument or of a deposit/withdrawal, FX conversion can affect balances and results, including through conversion spreads or fees.
14. Tax
Taxation of CFD profits and losses varies by country and personal circumstances. You are solely responsible for reporting and paying any taxes. We do not provide tax advice.
15. No investment advice
Xntara provides execution-style access and educational materials. We do not provide personal recommendations. Academy content, news, and market commentary are general information only. You must form your own judgment or seek independent professional advice.
16. Past performance
Past performance, simulated performance, and hypothetical examples are not reliable indicators of future results. Markets can behave differently from historical patterns.
17. Acknowledgement
By applying for an account or trading on the Platform, you acknowledge that you have read this Risk Disclosure, understand that you can lose money — potentially rapidly and substantially — and accept that you are responsible for your trading decisions and risk management.